Not sure if you have to put it in the drupal directory, but for the php.ini file:

"Since XAMPP 1.7.1 the "php.ini" is only in the directory "\xampp\php". Till XAMPP 1.7.0 is was in the directory "\xampp\apache\bin".

If a change in the "php.ini" have no effect, it's possible PHP is still using an other one. You can verify this with phpinfo(). Go to the URI http://localhost/xampp/phpinfo.php and search for "Loaded Configuration File". This value shows you the "php.ini" PHP is really using."

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